KATHMANDU, May 22: Madhesh Province is projected to record an economic growth rate of just 1.31 percent in the current fiscal year (FY), far below the national average of 3.85 percent. The weak performance is attributed to declining output in paddy, fisheries, and forestry, alongside negative growth in the overall agriculture sector.
According to estimates released by the National Statistics Office (NSO) on Wednesday, Madhesh’s growth has been on a downward trend for three consecutive years. The province posted 3.18 percent growth in FY 2023/24 and 2.72 percent in FY 2024/25. Insufficient rainfall has been a major factor, hampering paddy and fish production in a region heavily dependent on agriculture.
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Raj Kishor Singh, member of the Policy and Planning Commission of Madhesh Province, said the upcoming budget will prioritize agriculture, education, health, infrastructure, and social development.
Among provinces, Bagmati leads with an estimated growth rate of 5.40 percent, followed by Gandaki at 5.01 percent. Koshi is projected to achieve a growth of 3.13 percent, Sudurpaschim 3.28 percent, Karnali 2.94 percent, and Lumbini 2.87 percent. While Madhesh and Lumbini show sharp declines, Bagmati, Koshi, Gandaki, and Sudurpaschim are expected to expand steadily.
Bagmati’s growth is driven mainly by wholesale and retail trade, followed by real estate services. In Gandaki and Karnali, public administration and defense are key contributors, while education and administrative services play a major role in Lumbini and Sudurpaschim. The electricity and gas sector has achieved the highest growth across most provinces, with financial and insurance services expanding notably in Karnali and Sudurpaschim.
Economic disparities remain stark. Bagmati tops per capita income at USD 2,644, while Madhesh ranks lowest at USD 934. Gandaki is projected at USD 1,651, Koshi at USD 1,410, Lumbini at USD 1,208, Sudurpaschim at USD 1,170, and Karnali at USD 1,108. The national average stands at USD 1,513.
NSO data highlights Nepal’s continued reliance on Bagmati Province for economic activity. Uneven industrialization, heavy dependence on agriculture, and varying levels of investment have widened regional disparities across the country.
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